Latest indications confirm a decline in world cereal production in 2012 from the record in 2011. The decrease will result in a significant reduction in world inventories by the close of seasons in 2013 even with world demand sliding as a result of high prices.
World cereal production down 2.6 percent from the 2011 record
» FAO’s latest forecast for world cereal production in 2012 has been revised downward slightly (0.4 percent) since the previous update in September, to 2 286 million tonnes. The latest adjustment mostly reflects a smaller maize crop in central and southeastern parts of Europe, where yields are turning out lower than earlier expectations following prolonged dry conditions. At the current forecast level, world cereal production in 2012 would be 2.6 percent down from the previous year’s record crop but close to the second largest in 2008. The overall decrease comprises a 5.2 percent reduction in wheat production, and a 2.3 percent reduction for coarse grains, while the global rice crop is seen to remain virtually unchanged. Severe droughts this year in the United States and across a large part of Europe and into central Asia have been the main cause of the reduced wheat and coarse grains crops. However, the very early indications for wheat crops in 2013 are encouraging, with winter wheat planting in the northern hemisphere already well advanced under generally favourable weather conditions.
See full Press Release: http://www.fao.org/worldfoodsituation/wfs-home/csdb/en/
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